NCERT Class 11 Economics Indian Economic Development Chapter 5 Human Capital Formation in India Extra Questions and Answers
Class 11 Economics Indian Economic Development Chapter 5 Extra Inside Questions and Answers – Human Capital Formation in India. Here in this Page Class XI Students can Learn Extra Questions & Answer 5th Chapter Economics Indian Economic Development fully Inside.
We Provided Here Human Capital Formation in India Economics Indian Economic Development Chapter 5 Long Answer Type Question, MCQ Questions & Answer, Short Answer Type Questions (2 or 3 marks), and Very Short answer Type Question (1 marks) Solution.
Class 11 Economics Indian Economic Development Chapter 5 Inside based Question
Economics Indian Economic Development Chapter 5 Human Capital Formation in India Class 11 Inside 5 Marks, 3 marks, 2 Marks & And 1 Marks Important Questions and Answers.
1) ………..is considered as one of the main sources of human capital.
(a) Investment in company
(b) Investment in education
(c) Investment in health
(d)None of the above
Ans -option (b)
2.) which of the following is not help in formation of human capital.
(a) Expenditure on living
(b)Expenditure on migration
(c) Expenditure on health and education
(d)Expenditure on acquire information related to market
Ans – Option (a)
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3.) Education provides knowledge to understand changes in society and scientific
advancements, thus, facilitate ……….and………
(a) innovations.
(b) inventions
(c) Both (a) or (b)
(d)Both (a) and (b)
Ans-option (d)
4) ……………to prove that increase in human capital causes economic growth is rather nebulous.
(a) nature evidence
(b) evidence
(c) Empirical evidence
(d)None of the above
Ans – option (c)
5.) Human capital considers ………….as a means to increase labour productivity.
(a) Education
(b)Healthy
(c) Both (a) or (b)
(d)Both (a) and (b)
Ans – option (d)
6.) Government of India has also started levying a ……‘education Fess’ on all Union taxes.
(a) 2 percentage
(b) 3 percentage
(c) 4 percentage
(d)5 percentage
Ans – option (a)
1.) Why spend money on education is important?
Ans -Spending on education by individuals is similar to spending on capital goods by companies with the objective of increasing future profits over a period of time. Likewise, individuals invest in education with the objective of increasing their future income.Like education, health is also considered as an important input for the development of a nation as much as it is important for the development of an individual.
2.) Who can work better a sick person or a person with sound health?
Ans -A sick labourer without access to medical facilities is compelled to abstain from work and there is loss of productivity. Hence, expenditure on health is an important source of human capital formation. The amount of money spent on preventive medicine (vaccination), curative medicine (medical intervention during illness), social medi-cine (spread of health literacy) and provision of clean drinking water and good sanitation are the various forms of health expenditures. Health expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation
3.) Explain migration is an help to capital formation.
Ans -People migrate in search of jobs that fetch them higher salaries than what they may get in their native places. Unemployment is the reason for the rural-urban migration in India. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher salaries that they may get in such countries. Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychic of living in a strange socio- cultural setup. The enhanced earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation.
4.) Explain spending to acquire information about market is an source of human capital formation.
Ans -People spend to acquire information relating to the labour market and other markets like education and health. For example, people want to know the level of salaries associated with various types of jobs, whether the educational institutions provide the right type of employable skills and at what cost. This information is necessary to make decisions regarding investments in human capital as well as for efficient utilisation of the acquired human capital stock. Expenditure incurred for acquiring information relating to the labour market and other markets is also a source of human capital formation.
5.) Who contributes more to national income — a worker in a factory or a software professional?
Ans -We know that the labour skill of an educated person is more than that of an uneducated person and that the former generates more income than the latter. Economic growth means the increase in real national income of a country; naturally, the contribution of the educated person to economic growth is more than that of an illiterate person. If a healthy person could provide uninterrupted labour supply for a longer period of time, then health is also an important factor for economic growth. Thus, both education and health, along with many other factors like on-the-job training, job market information and migration, increase an individual’s income generating capacity.
6.) Explain Empirical evidence to prove that increase in human capital causes economic growth is rather nebulous.
Ans -Empirical evidence to prove that increase in human capital causes economic growth is rather nebulous. This may be because of measurement problems. For example, education measured in terms of years of schooling, teacher-pupil ratio and enrolment rates may not reflect the quality of education; health services measured in monetary terms, life expectancy and mortality rates may not reflect the true health status of the people in a country. Using the indicators mentioned above, an analysis of improvement in education and health sectors and growth in real per capita income in both developing and developed countries shows that there is convergence in the measures of human capital but no sign of convergence of per capita real income. In other words, the human capital growth in developing countries has been faster but the growth of per capita real income has not been that fast. There are reasons to believe that the causality between human capital and economic growth flows in either directions. That is, higher income causes building of high level of human capital and vice versa, that is, high level of human capital causes growth of
Income
7.) Explain human capital and human development.
Ans -The two terms sound similar but there is a clear distinction between them. Human capital considers education and health as a means to increase labour productivity. Human development is based on the idea that education and health are integral to human well-being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an end; the end being the increase in productivity. In this view, any investment in education and health is unproductive if it does not enhance output of goods and services. In the human development perspective, human beings are ends in themselves. Human welfare should be increased through investments in education and health even if such investments do not result in higher labour productivity. Therefore, basic education and basic health are important in themselves, irrespective of their contribution to labour productivity. In such a view, every individual has a right to get basic education and basic health care, that is, every individual has a right to be literate and lead a healthy life.
8.) Explain the ways in which government expenditure express on Education.
Ans -The expenditure by the government on education is expressed in two ways
(i) as a percentage of ‘total government expenditure’ .
(ii) as a percentage of Gross Domestic Product (GDP). The percentage of ‘education expenditure of total governmentexpenditure’ indicates the importanceof education in the scheme ofthings before the government. Thepercentage of ‘education expenditureof GDP’ expresses how much ofpeople’s income is being committed to the development of education inthe country. During 19522014,education expenditure as percentageof total government expenditureincreased from 7.92 to 15.7 and aspercentage of GDP increased from0.64 to 4.13. Throughout this periodthe increase in education expenditurehas not been uniform and there hasbeen irregular rise and fall. To this ifwe include the private expenditureincurred by individuals and byphilanthropic institutions, thetotaleducation expenditure should bemuch higher.
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